LAHORE – Punjab is once again grappling with a sugar crisis as dealers have halted supply due to major disputes between sugar mills, brokers, wholesalers, and retail merchants over new official sugar prices — pushing retail rates to Rs200 per kilogram.
According to reports, the federal government recently fixed the ex-mill price of sugar at Rs165 per kg and the retail price at Rs173. However, disagreements erupted after sugar mills allegedly refused to supply sugar at the official rate, instead offering it at Rs176 per kg.
Dealers and brokers argue that until mills supply sugar at Rs165 per kg, sales and distribution across Punjab will remain suspended. Sugar supply from mills has been halted for the past four days.
The Kiryana Merchants Association stated they cannot buy sugar at Rs176 and sell it for Rs173. They claim the profit margin on the official rate is too low — only Rs8 per kg — while their operational costs, including transportation, packaging, and handling, amount to Rs10 per kg.
They have demanded the government set the retail profit margin at Rs12 per kg, regardless of the fixed price. The association also warned that if their demands are not met, the existing sugar stock will run out in three to four days, after which sales will be completely suspended across the province.
Rawalpindi Traders Association President, Saleem Parvez Butt, further warned that any fines, challans, or shop closures imposed on retailers would lead to a strike.
